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Elisa Newby



Dr. Elisa Newby
Central Bank of Finland                                          Email: 
Monetary Policy and Research Dept.                               Tel:             +358 9 831 2513
P.O. Box 160                                                     Fax:             + 358 9 174872
FI-00101 Helsinki                                                Nationality:     Finnish
Finland                                                          Date of Birth:   15 February 1976

Academic Profile
08/2010 -            Economist, Monetary Policy and Research Department, Central Bank of Finland

2007- 2010           College Lecturer in Economics, Director of Studies and Fellow, Fitzwilliam College,
                     University of Cambridge

2004-2007            Research Associate
                     Centre for Dynamic Macroeconomic Analysis, University of St Andrews
                     Title of the Ph D Thesis: ‘Sustainable Monetary Policy. Lessons and Evidence from the Bank
                     Suspension Period of 1797-1821.’
                     Supervisor: Professor Charles Nolan
                     External Examiner: Professor Max Gillman, Cardiff University; Internal Examiner: Dr Gary Shea
                     The thesis was passed without requiring revision on 28/3/2008.

1995-2001            Masters in Social Sciences, University of Helsinki
                     Major Studies in Economics and Statistics
                     Minor Studies in Mathematics and International Business Studies
                     Masters Thesis on ‘Does EMU Encourage Labour Market Reforms?’ passed as Magna Cumlaude

1997-1998            Erasmus Scholarship, University of Edinburgh
                     Honours level studies in micro- and macroeconomics

Other Professional Experience
2002-2004            Economist, Statistics Department, Central Bank of Finland
                        - Specialist analysing current account variations and Finnish financial markets
                        - Supervising compilation of Finland’s balance of payments statistics

f Finland
1999-2002            Derivatives Analyst, Helsinki Stock and Derivatives Exchange
                     Qualified Derivatives Trader
                         - Specialist in risk assessment and setting margin requirements for derivatives trading
                         - Qualified in Eurex derivatives trading and clearing

1996-1997            Project assistant, Organisation and Management Development Unit, Central Bank of Finland
                         - Part time role in supporting strategic planning and budgeting (concurrent with studies)

Research Papers

The Suspension of the Gold Standard as a Sustainable Monetary Policy
               - The paper models the gold standard as a state contingent commitment rule that is only feasible
                    during peace. It shows that monetary policy during war, when the gold convertibility rule is
                    suspended, can still be credible, if the policy maker's plan is to resume the gold standard at the old
                    par value in the future. The DGE model developed in this paper suggests that the resumption of
                     the gold standard was a sustainable plan, which replaced the gold standard as a commitment rule
                     and made monetary policy time consistent. The equilibrium is supported by trigger strategies,
                     where private agents retaliate if a policy maker defaults its policy plan to resume the gold standard
                     rule. Revised and resubmitted for the Journal of Economic Dynamics and Control

Midas, transmuting all, into paper: the Bank of England and the Banque de France during the Napoleonic Wars
               - The paper re-assesses Napoleonic wartime economic policy in light of recent developments in
                    monetary and fiscal theory. Tight interaction between fiscal and monetary policies emerges
                    especially during wartime crisis, and monetary rules, such a commodity standard, can achieve
                    much in the way of stabilising the economy. But institutions play a fundamental role in the
                    conduct of monetary policy. We explain exactly how the Bank of England was able to facilitate
                    tax smoothing, whereas Banque de France was not. Tax smoothing implies not only limits to the
                    distortionary impact of given path of government expenditure but also implies that government
                    debt markets are sufficiently well developed to absorb an increase in government liabilities.
                    Furthermore we study the extent to which the decision to suspend temporarily gold payments by
                    the Bank of England and to adopt a concerted strategy of gradual resumption can be thought of
                    approximating a state-contingent optimal rule, which afforded protection to the government and its
                    central bank in pursuing the conflicting goals of price stability and war finance. (Joint with Prof
                    J. Chadha)

The Gold Standard in General Equilibrium
              - The paper develops a model of the gold standard in the DSGE framework and uses it to analyse
                   economic fluctuations associated with business cycles during the gold standard period of 1717-
                   1914. By using computational methods I analyse the impact of gold preference, government
                   expenditure and technology shocks to the economy and compare my findings to data.

Financial stability and the Suspension of the Gold Standard Rule
                 - The paper analyses how changes in the monetary regime can be used to stabilise financial markets.
                      The DSGE model developed in this paper demonstrates that the gold standard satisfies the long-
                      term objective of price stability during peace, but during war the gold following the gold standard
                      rule intensifies the volatility of the markets especially if there are nominal rigidities such as a
                      usury law. The suspension of the gold standard stabilises price level, consumption and asset
                      prices, but might have been avoided if the central bank had been able to increase the interest rate
                      above the 5% usury limit.

Research Funding
Studentship at the Centre for Dynamic Macroeconomic Analysis, £27.000 in total
Yrjö Jahnnson’s Foundation, €12.000

Teaching Experience

In Cambridge:                   1st year lecture series in Economic History
                                1st, 2nd and 3rd year Microeconomics supervisions
                                1st and 2nd year Macroeconomics and mathematics supervisions

In St Andrews:                  Lecture series in Financial Modelling, MSc Programme
                                Quantitative Methods Laboratories
                                Monetary Policy & International Finance
                                Macroeconomics tutorials (1st, 2nd and honours modules)
                                Microeconomics tutorials (1st and 2nd year modules)

Student Supervision

MPhil level: William Bryce, Yuke Li, Orlaith O’Connor, Chioma Ogamya and Trang Lee (University of Cambridge)
Honours level: Chirag Dave, Tal Grant, Tom Xu (University of Cambridge)
All my students have received grades equal to or above 2.1

Review for Journals
The Journal of Economics Dynamics and Control
The Scottish Journal of Political Economy

Conference and Seminar Presentations
Feb. 2010        History seminar, University of Aberdeen
Oct. 2009        Credit crunch and the macroeconomics conference, Bank of Finland/CEPR/ the Cass Business School
June 2009        26th symposium on Money, Banking and Finance, Université d’Orléans
Feb 2009         Quantitative Economics Seminar, Cambridge
May 2008         Quantitative Economic History Seminar, Cambridge
Sept. 2007       The MMF Annual Conference, Birmingham
June 2007        The Monetary and Financial Economics, Deutsche Bundesbank
2005,-06,-07     In charge of organising the Annual CDMA Conference

Membership of Professional Societies
American Economic Association, Economic History Association

English         Fluent written and spoken
Swedish         Good written and spoken skills
French          Good written and spoken skills
Finnish         Native speaker

Computer Skills
Ms Office, Scientific workplace, MatLab, SPSS etc.
Several trading and risk management software, SQL database systems

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